A new tax regime for qualifying asset holding companies (QAHCs) will be introduced in the UK on 1 April 2022.
According to our UK firm, Alvarez and Marsal, the draft legislation was released on 4 November 2021 which A&M has reviewed and which has generated a great deal of interest amongst clients in certain fund sectors.
A key aim of the regime is to enhance the UK’s competitiveness as a location for asset management and investment funds by addressing the challenges that may lead companies to be located outside of the UK, commonly in Luxembourg because of its beneficial tax regime (Luxembourg has an extensive double tax treaty network and reliefs to ensure investment returns do not suffer material tax). Many clients are therefore considering the potential costs and benefits of relocating companies to the UK.
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